Leverage in cryptocurrency trading is the practice of making transactions with borrowed money in order to increase profits. In other words, traders can use leverage to increase the purchasing or selling power of their trades. As a result, traders with little starting capital can nonetheless engage in leveraged trading by using it as collateral.
Leverage raises liquidation risks, which increase as it does. Prior to choosing to use leverage in the cryptocurrency market, your transaction should be supported by both technical and fundamental elements before being implemented.